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Updated 29 Jul, 2017 11:21am

PSX heaves a sigh of relief as uncertainty subsides

KARACHI: A bounce-back close to the end of trading hours on Friday saw the KSE-100 index end the session with a marginal gain of 6.27 points (0.01 per cent) at 45,912.

The stock market was jittery in the morning as investors speculated about the verdict in the Panamagate case. Risk-averse investors began taking profit, which pushed the KSE-100 index to the intra-day low by 1,670 points (3.6pc).

In the second session, much of the recovery took place after the five-member bench of the Supreme Court announced its unanimous decision disqualifying Prime Minister Nawaz Sharif from holding public office.

Some brokers and dealers in the trading hall cheered and celebrated while investors heaved a sigh of relief because the decision ended prolonged uncertainty. Despite the last trading day of the rollover week, bargain hunters decided to cherry-pick stocks with attractive valuations.

An hour into the second session, the KSE-100 losses were cut down to 750 points. As optimism returned to the market, a mini-rally tossed the index into the positive territory, marking the intra-day high by 155 points. Yet the gains were pared as investors turned cautious ahead of the weekend.

“On the leader board, Hub Power, which hit its upper circuit, was the top gainer as investors, in a bid to hedge against possible rupee depreciation in the future, built fresh positions in the stock while notable oil scrips also received much attention,” said dealers at Elixir Securities.

“The market’s performance towards day-end suggests that it had priced in political uncertainty to a great extent. Events over the weekend could determine if this newfound enthusiasm carries over to the next week and beyond,” stated analysts at Intermarket Securities.

Published in Dawn, July 29th, 2017

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